The Central Board of Indirect Taxes and Customs (CBIC) has released a comprehensive set of Frequently Asked Questions (FAQs) on the Newly Introduced Customs Reforms announced as part of the Union Budget 2026-27 dated Feb 01, 2026.
The document provides detailed clarifications on several transformational Customs initiatives aimed at ease of doing business, trade facilitation, passenger convenience, digital governance, and sector-specific reforms.
These reforms mark a major step towards a modern, technology-driven, transparent, and citizen-centric Customs ecosystem.
Key Highlights of the FAQs:
Citizen-Friendly Customs Measures (Baggage Rules, 2026)
The Baggage Rules have been significantly rationalised for the first time since 2016 to address evolving travel patterns and global mobility.
Major features:
- Enhanced General Free Allowances for passengers arriving in India.
- Clear definitions for personal effects, jewellery, foreign professionals, etc.
- Simplified Transfer of Residence provisions with higher duty-free entitlements.
- Provision of Temporary Import Certificates and Export Certificates for valuables.
- Digital filing through Atithi app / ICEGATE for declarations.
Major Boost to E-Commerce Trade
The Government has introduced reforms for exporters, MSMEs, start-ups and courier logistics.
Key announcements:
- Removal of the ₹10-lakh value cap for commercial courier exports w.e.f. 1 April 2026.
- Enabling Return to Origin (RTO) for uncleared courier consignments to reduce congestion and operational burden.
- Simplified returns and rejects processing through a risk-based, digital verification system.
- Dedicated framework to facilitate high-volume e-commerce returns without treating them as fresh imports.
Fisheries Sector Reforms
In a landmark step, a new legal framework supports Indian-flagged fishing vessels operating beyond territorial waters.
Key features:
- Extension of Customs jurisdiction to EEZ and High Seas (for fishing-related activities).
- Duty-free landing of fish caught by Indian-flagged vessels beyond territorial waters.
- Export treatment for fish landed at foreign ports.
- Mandatory vessel identification, satellite-based tracking (NavIC), and verification safeguards.
Trust-Based Facilitation in Imports
To strengthen the trade ecosystem, major procedural and financial ease-of-doing-business measures have been introduced.
Reforms include:
- Extension of Deferred Payment of Import Duty from 15 to 30 days, effective 1 March 2026.
- Introduction of Eligible Manufacturer Importers, allowed to use deferred duty facility till 31 March 2028.
- Strengthening AEO-based facilitation across supply chains.
Automation in Import Clearance
To promote paperless, contactless, and faster clearance:
- Auto Goods Registration for AEO T2/T3, Eligible Manufacturers, and long-standing supply chain entities.
- Auto Out-of-Charge (Auto OOC) extended to all importers (where no compliance flags arise).
- System-driven risk-management-based clearance with officer override only when required.
Objective of the Reforms
These reforms, announced in the Union Budget 2026-27 and elaborated through the newly issued FAQs, aim to:
- Strengthen trade facilitation
- Enhance passenger ease at international airports
- Support MSMEs, artisans, and exporters
- Promote Make in India through seamless global access
- Empower deep-sea fishing and marine economic opportunities
- Enable technology-driven Customs operations with automation and transparency
Availability of FAQs
The full set of “Frequently Asked Questions on Newly Introduced Customs Reforms – February 2026” is available HERE
